On reaching Antofagasta the Covadonga went into the roads and lay inside the reef which stretches across their entrance; and there, her captain, Carlos Condell, telegraphed to Valparaiso, giving details of the previous day’s fight, and asking for further orders, while he set about repairing the very extensive damage which had been sustained by his ship in her fight with the Independencia. On the following day Condell received news from Valparaiso to the effect that the Chilian fleet had gone north to Callao; and was instructed that he himself was to rejoin as soon as he received word from Iquique that Admiral Williams had returned to that port. He was further instructed to proceed, meanwhile, as rapidly as possible, with the repairs to his own ship.

The gunboat was accordingly hauled alongside the wharf at Antofagasta, her heavy guns were lifted out of her, and the vessel was careened in order that the shot-holes below her water-line might be plugged.

As the work on the Covadonga would, it was expected, occupy at least a fortnight, Jim Douglas applied to Commander Condell for leave to go ashore occasionally, that he might explore the quaint old town, which dated back to a period long anterior to the conquest of Peru by Pizarro and his band of adventurers.

During his short sojourn on board the Covadonga Jim had formed a rather intimate acquaintanceship with her first lieutenant, a man named Jorge Montt; and one evening, after he had returned from one of his periodical surveys of the town, Jim entered the tiny mess-room to find Montt discoursing at length to an eager circle of listeners upon the legends and traditions of old Peru.

“Yes,” Montt was saying, as Douglas entered, “it is an undisputed fact that there are thousands—nay, tens of thousands—of the descendants of the ancient Inca race now living in Peru, Bolivia, and upper Chili, who implicitly believe that a time will come when the Incas will regain their old supremacy, drive all the Latin races out of this part of South America, and re-establish the old Inca monarchy once more, in all its pristine glory. You know, of course, that there are many stories extant in this country as to the existence of vast hoards of buried treasure? Well, it is prophesied, I believe, that one day a man shall arise in Peru who shall head a vast Indian insurrection and drive the ‘oppressors’ into the sea; and his power will, it is said, be derived from these enormous hoards of buried treasure, the locality of which is well known among the Incas, and which will be revealed to the ‘Libertador’—when he makes his appearance. The study of these Indian traditions is very interesting, I assure you, gentlemen,” he concluded.

“But then,” remarked Jim, who had sat down and was listening intently, “nearly all semi-civilised races have traditions of the same sort. Take the North American Indians, for instance; or the Zulus. Why, even the Chinese believe that one day a chief will arise among them who shall lead them to the conquest of the whole world! I do not think there is very much in these old legends. Every nation has them, in some form or other.”

“Yes, that is so,” agreed Montt; “but I have studied the history of the Inca races very closely, and, so far as my experience goes, there is no nation on earth whose prophecies are so likely to come to pass as are theirs. I am personally aware of many occasions on which prophecies made by members of this strange race have come true in the most marvellous way. For myself, I feel convinced that the Incas really have some means, unknown to us, of foretelling future events; for I once visited in my youth an old woman in this very town of Antofagasta, who prophesied many things about my future, many of which have, so far, come true, and the rest of which will doubtless happen in due time.”

Montt finished his remarks to the accompaniment of a chorus of derisive laughter, and a number of voices were raised in protest against his attempted imposition upon their credulity. Whereupon the lieutenant became somewhat angry, and replied shortly:

“Well, gentlemen, you may believe me or not, as you please; but it is the truth that I am telling you; and I can take you to that identical personage, if you wish, for I believe she still lives here, and you can therefore experiment for yourselves, should you feel so inclined. For my own part I believe implicitly everything that she told me. Now, are any of you willing to accompany me to this Inca woman’s house and put her powers to the test?”

There was a lengthy pause, for all the officers were either Chilians or of Chilian descent, and the South American races are notoriously superstitious. But Jim, being an Englishman, had no qualms; and he felt, for some reason or other, a great curiosity to see this strange personage. He therefore replied: